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Posted in Auto Loans
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Question By
Jwarren3283

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Need advice ! Car loan questions.
Here is my situation.
2 years ago my score was 535 and I purchased a car from a local dealer no money down 24% interest and 380 a month. A week after the car had transmission issues. The loan was with Chrysler capital for that car. I eventually ended up returning the car because of the issues it had and got my old car back. (Ran my credit a ton of times and now have 35 hard inquiries on my report that should fall off 02/17).

About a week later I went to a few dealerships and got denied for a loan on another couple cars . Then a family member told me about a certain dealership and I went! They got me a 2013 dodge dart for 20 percent interest with 1000 cash down.(through Chrysler capital ) Now i know that was a horrible deal but i needed a car.

It's two years later and my score is now right around 600 and I want out of the 20% interest rate I have and into something lower. My payments are 447 a month with only 250 going to principal.

Here is what i have been doing to fix this-
1. Got a capital one secured credit card about 2 months ago.(raised my score 18 points first month)
2. Disputed everything on my report.(dropped alot of negative things off)
3. Made sure I started saving for a newer car.

I see stories of people with my score paying a few thousand down and getting a great interest rate but my dealer friend tells me those don't happen.

My car has negative equity of about 5000 dollars and i was looking at a 18- 19k dollar car with low miles.
So with all of this is there anyone out there to help me decide if it's time right now to go for another loan and car or if i should wait and save a bunch of money (5000) .

I have done the math and my savings with 5000 down is only about 1500 dollars over the life of a New loan at 15% interest. So I'm not sure what would be beneficial.

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